Indonesia ’finance ministry targets exports from bonded zones to grow around 30 percent with worth US$61.26 billion and attract new investment - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Indonesia ’finance ministry targets exports from bonded zones to grow around 30 percent with worth US$61.26 billion in 2021 and attract new investment, said the official yesterday. As known, President Joko Widodo urged his official make a breakthrough to boost the country export and investment to drive the Southeast Asia largest economy.

“We know that our trade balance must be supported by exports according to the president’s direction,” Director General of Customs and Excise at the ministry, Heru Pambudi told reporters yesterday (09/19).

Throughout Indonesia there is 1,372 bonded zones and have contributed exports of $47.12 billion with a total investment of Rp178.47 trillion ($12.75 billion). Of the total existing bonded zones, as many as 119 has transform as an independent bonded zones were launched today.

Of the 119 independent bonded zones, efficiency has increased by 30 percent. He adds, “In 2020 it is targeted that there will be 500 independent bonded zones and then in 2021 to 2022 it will become an independent bonded zone.”

To support the targets, he continued, the ministry has sent a proposal to the coordinating minister for economic affairs office to integrated the National Logistics Ecosystem from upstream to downstream. With this program, Pambudi hope to increase the efficiency of independent bonded zones.

Since last year, Indonesia has cuts the export licensing process in bonded zones. Deputy finance minister Mardiasmo said, the directorate general of customs and excise aimed to rebranded the bonded zones to boost exports in the country by providing certainty and various facilities for exporters.

The government has launched Minister of Finance Regulation Number 131/PMK.04/2018 concerning Bonded Zones and the Director General of Customs and Excise Regulation Number PER-19/BC/2018 concerning Management of Bonded Zones to provides certainty and various facilities to users of export and import services.

The certainty and convenience applied include cutting down the licensing process is faster, from the initial 10 – 15 working days to three working days at the customs office and one hour at the regional office. Then, number of transactional licenses, from 45 licenses was cut down to 3 licenses electronically

The period of passing of the permit applies continuously until the permit is revoked so that it does not need to submit an extension of the permit. Furthermore, subcontracting facilities in the form of exports directly from subcontractor recipients.

The provision of different fiscal and procedural facilities for each type of industry, so that in the permit there is certain treatment for each entrepreneur, synergise between the directorate general under finance ministry, and independency services for bonded zones that meet the requirements.

Pambudi also expect, the improvement of the bonded zones system to bring in new investment in the special areas. At present, he said, the focus of new bonded zones in Jakarta and surrounding areas. In the future, he revealed, the government is preparing new bonded zones in Central, East Java also Outside Java

“We are also exploring Sulawesi and Sumatra. We will give better incentives in fiscal incentives and procedural convenience to support the planned,” he concluded.

US$1: Rp 14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com